Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 12/31/2008, Docket: RP09-158-000, Status: Effective

Original Sheet No. 424 Original Sheet No. 424

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

28. NOMINATIONS; ALLOCATION OF CAPACITY; CURTAILMENT OF SERVICE; AND CONFIRMATIONS (Continued)

 

28.6 Overrun of Entitlement During Capacity Curtailment

 

All quantities of gas taken by Buyer in excess of Seller's maximum daily delivery

obligation to Buyer as curtailed pursuant to this Section 28 shall be subject to the

overrun penalties set forth in Section 18 of the General Terms and Conditions of this

FERC Gas Tariff.

 

28.7 Compensation

 

(a) In the event that the provisions of Section 28.5 are activated by Seller as a

result of a force majeure condition or an adverse governmental action, a Buyer

receiving priority relief under Section 28.5 pursuant to such activation shall

pay compensation, calculated in accordance with Section 28.7(c) below, to other

Buyers that experienced greater curtailment as a consequence.

 

(b) Within thirty days after the end of a month in which Seller has granted priority

relief, Seller shall notify each Buyer that experienced greater curtailment

("Excess Curtailed Buyer") as to the quantity of capacity curtailments that such

Excess Curtailed Buyer would not have experienced but for the grant of relief

(the "Excess Curtailment Quantity"), and shall notify each Buyer that experienced

lesser curtailment as to the additional capacity that such Buyer was allocated

due to the grant of relief. Seller shall notify all Buyers whose allocations

were affected by such relief of the pro rata allocation of the aggregate Excess

Curtailment Quantity experienced by all Excess Curtailed Buyers, showing the

quantity of capacity to be used for the purpose of determining the amount of

compensation owed to each Excess Curtailed Buyer by each Buyer that experienced

lesser capacity curtailment. The affected Buyers shall be responsible for

resolution of any and all resulting compensation claims between themselves.

 

(c) The Buyer that experienced lesser curtailment shall pay to the Excess Curtailed

Buyer, damages in an amount equal to the one hundred percent (100%) load factor

equivalent of the reservation charges applicable to the curtailed transportation

capacity multiplied by the difference between (a) the Excess Curtailed Buyer's

pro rata capacity curtailment quantity determined under Section 28.4 above and

(b) the capacity curtailment quantity determined pursuant to this Section 28.

Such payment shall in no way limit the right of Excess Curtailed Buyers to seek

further damages in another forum from Buyers that experienced lesser curtailment

due to the grant of priority relief pursuant to this Section 28.